EP 401 – Live From The Quest Vault with Ingrid Chavez and Keaton Munster

NCS 401 | Self-Directed IRA

NCS 401 | Self-Directed IRA


Self-directed IRAs differ from other IRAs in that it permits the owner to have more control and flexibility to choose from a broad spectrum of investments. If you do your homework and buy at the right value at a good time, these investments can potentially have compelling returns over time. There are very few limits on what a self-directed IRA can invest in. Scott Carson is joined by Ingrid Chavez and Keaton Munster from Quest Trust Company to discuss some of the biggest goals and new opportunities in 2019 with Quest Trust and your self-directed IRA.

Listen to the podcast here:

Live From The Quest Vault with Ingrid Chavez and Keaton Munster

We’ve got a couple of guests in the audience. We’re honored again in 2019 to have Quest as a sponsor of the Note Closer Show podcast. It’s a great year with some great numbers throughout the year. We love partnering with you and help promote you because you do such a great job out there as well. I thought we’ll talk in this episode a little about some of the new things going on because everybody always has goals. I want to spend less or I want to save more towards my retirement accounts. I wanted to get out of my job later on. You’ve opened up a lot of new accounts. People are transferring a lot of money over.

It’s fun to see the fluctuation between late November all the way until about mid-February with everybody trying to finish everything for the end of the year. Open accounts to make sure they have the option to make contributions for 2018 and get 2019 started right before taxes and everything. That’s a lot of fun. I know that Ingrid and I were discussing how the year-end works, especially related more towards Scott Carson clients. The new and seasoned Note Closers. It’s fun going through all the numbers for the year.

That’s always a great thing when you see numbers going up. It’s like Catch 22 for you because Quincy and Nathan are always wanting to open more accounts than you did last year.

It’s been good so far.

With the opening of this branch and also the Dallas location as well too.

We did some expansions. It’s a corporate office. We have about 100 employees there, but we have some satellite offices in Dallas and Austin, which we expanded where we extended our Dallas office as well too, to get more people to go there. The classroom is the same. It’s about the same size as Sierra. You fit about 100 people in there. We do weekly classes and monthly events but we also are getting some other employees out there. Here in Austin as well this year, we’re going to be growing it. Right now, we have five people working here. We’re planning on bringing more transactions people to better serve our clients here in the area as well. It’s fully operational.

You’ve had people coming out for appointments and drop off paperwork and stuff like that. You still do stuff online. I know I sent in documents on Sunday a note deal with a student of mine, who’s getting some things funded on stuff like that. That’s been done through the private placements and the staff out of Houston. You guys still work very cohesively together. If something’s going on in Dallas or Houston or Austin, the phones ring no matter what and get answered.

Simultaneously, no matter what, we will still provide world famous customer service, no matter whether you’re here live, you’re on the phone, all through the email. It’s strictly a policy that we all start to stay on top of providing customer service better than anybody else in the industry.

You’ve been on here multiple times. We didn’t officially introduce Keaton. This is your first time on the show?

Yes, first time on the show. My name is Keaton Munster, one of the certified area specialists for Quest Trust specifically located here in Austin with Ingrid. You are probably familiar with her if you’ve been on before, but anything you would need in the Austin area, you call in. Again, I’m one of the certified IRA specialists. I’m excited for the first time. I’m looking forward to a lot more business and a podcast with Scott here in Austin. It’s going to be fun.

As he said, certified IRA specialist. He does take the CISP exam. We try to keep our staff highly trained here at Quest. Quincy and Nathan, the president and founder. They try to make sure that they don’t get some employees funding your transactions. That these employees are highly educated as well. After two years of working at the company, you get to go and take the certification exam, which is a week-long training course. You take the exam at the end to become a certified IRA services professional.

How many CISPs do you have?

We have over twenty now. Every year we send different people that have become qualified to take the exam. We have a very high pass rate because we hold them up to that.

Let’s talk a little bit about some of the goals for the year. For you, what are some of the biggest goals for the Austin office for 2019?

For the Austin office, I would say to continue growing our Lunch and Learns because in Houston, although we’ve had our office there for years, a lot of our clients are familiar with us having an office and holding those weekly classes and everything there. That’s what we’re trying to do here in Austin and recreate that as well. We have Lunch and Learns every Thursday from 12:00 to 1:00. We’re wanting to get a client’s more familiar with them being able to come into the office here to get everything taken care of and coming to get more education on IRAs and also network with other investors because that’s key.

How often do you have the Lunch and Learns?

We do our Lunch and Learns every Thursday from 12:00 to 1:00. The time varies because it is lunchtime. We like to talk, educate, and network. Every Thursday from 12:00 to 1:00 here live and in our Quest Austin office classroom. It’s free to attend whether you’re a client or not. If you can’t make it live in person to come, network and talk with us here face-to-face, you can join live via Zoom, which you can find on QuestTrust.com on the events tab or you can join live through Facebook. If you follow us on Facebook, you probably already get a notification that says Quest Trust has gone live or simply go to our Facebook page and click like. You’ll be able to follow us and then we’re going live for our events.

You’ve also been talking about doing a Quest Trust podcast. Is this correct?

Yes. I want to bring something new to the table, something different than what we normally do. Something along the lines of maybe a weekly episode of some specific topics that we’re going to cover. Even so far as see what the listeners would like to hear, some new aspects, new ways that you’d like to invest in 2019, understanding the real options that you have inside a retirement account outside the public market, etc., but things are going on and on. We’re going to get that started here pretty soon.

You have a very busy schedule for everything going on. You’ve got events coming up.

We are having our second annual expo that’s going to take place in Houston. We have some other opportunities there for some masterminds and things like that. That’s definitely something you should be on the lookout for as well if you want some more education and get some more of the networking, and that’s going to be in August in Houston.

That’s a big event. It’s the second year you had done. It was such a big success. Everybody’s got big goals for year. Usually one of the big things is, “I want to lose weight.” That’s always there. It’s not until February 1st, until the Super Bowl. You also have the big thing about I want to save more towards retirement. I want to leave my job as fast as possible.

The key I would say for that is it’s not saving for retirement. It is investing for retirement because that’s how you’re going to grow your wealth. Even if you don’t have anything for your retirement yet, it’s not too late to start because you can still make contributions and open an IRA for 2018. Even if you didn’t get that set up by December, you have until the tax filing deadline, which is April 15th, to be able to open a Coverdell. Maybe you have any kids that are going to school. You can pay for anything from their elementary all the way to higher education, their books, tutoring, all that you can pay for tax-free with a Coverdell account. You have until tax filing deadline of this year to be able to open and contribute for last year. You can double up by making a 2019 contribution as well.

How much for ESA?

It’s $2,000 per child per year. Right now, you can put $4,000 if you do the 2018 and 2019.

They have until April 15th. ESA is $2,000 per kid per year. If you’ve got five kids, you can put $10,000 for one year or $20,000 for two years for both kids. Are those transferable if one kid doesn’t use it? Can they eventually transfer it to another one?

You can. You have two set accounts. They have until the age 30 to be able to use those funds if they still have funds in that account. I say if it’s even before that and they don’t need those funds anymore, you can transfer it to a younger sibling or even a cousin.

As long as they want to keep in mind that the designated beneficiary they would transfer it to is going to be able to take advantage of the accounts. One thing to keep in mind, because sometimes you think, “I’m 30. I’m going to pass it on to my cousin, who’s in college.” They’re already halfway through. You might want to think about the younger cousin or a sibling or somebody else that’s not even at eighteen yet.

The other one I was going to talk about is these are the two special accounts that a lot of people don’t know that you can self-direct, but it’s going to be Health Savings Account. You can still contribute to that until the same tax filing deadline as well. For those who have the self-plan for singles, you’re going to be able to contribute $3,450 for 2018 still. It’s $6,900 for a family plan. You’re also able to make that 2019 contribution, which also increased for 2019. They increased the family one for $100. Now, you’re able to contribute $7,000 and $3,500 for the single. Both contributions went up for 2019. You can pay for anything like eyeglasses, going to the dentist, acupuncture. If you need to get a massage, physical therapy, all those things could be included in the health savings.

Massages and therapy.

Holistic medicine.

All tax-free.

NCS 401 | Self-Directed IRA

Self-Directed IRA: Life happens. Everybody’s got schedule changes on a daily basis.


Contributions, just to touch on the main accounts everybody is used, the traditional and Roth IRAs. For the first time in the last five or six years, the contribution limit has gone up. Normally in the past years, it’s been $5,500 if you are 50 or younger with a $1,000 catch up over the age of 50. Now, they bumped it up to $500. Everybody, 50 or younger, you can contribute $6,000 to a traditional or Roth IRA in 2019. If you’re over the age of 50, you get that $1,000 catch up, which would give you $7,000. Keep that in mind when you’re making your contribution.

It hasn’t changed for a while as Keaton said. This is like one of the first things you have to do that increase contribution.

You’d still put away $5,500 towards 2018 and then $6,000 for this year. It’s $11,500 if you’re wanting to get started.

If you don’t have an account established, you’ve been thinking about something like self-directed out to filter into your private investments, alternative investments, real estate, that’s a big chunk of money that you can filter into an account within two or three-month period to fund your first investment.

To hit last year’s numbers, you’d have to put away roughly $1,200 a month to get it. If you’ve got $6,000, then you could put away $800 a month at that point to hit your contribution. You’d have until April 15th so $500 in a month then.

You can think about it so much as the fact that you have sixteen months when it comes to your tax filings that is. If you waited until April, our tax filing deadline of the year following that exact year, you made contribution January 1 within the first week, that contribution is going to last until April, but you can still make the next year contribution come January 1st. Even though you might not have filed your return, you can still make a contribution for that exact year as well as your previous year.

Keep in mind, we’re making a contribution for the previous year, you have to tell your custodian that you wanted the positive for the previous year. Otherwise, it’s going to get applied to the current year you’re making the contribution.

There’s a way to do that with the use of phone call or email.

Let’s say if you are sending in a check or something by the mail, include a deposit coupon or include some memo on the check or the wire saying that it’s going to be for the 2018 tax year so it’s deposited correctly.

Can they deposit through the ACH through Quest online as well and make a phone call, email you, to let you know that too or no?

Not through that. We cannot take any contributions through the ACH. That’s going to be for any payments or anything like that, but not for contributions.

That’s good to know though. The ACH is getting better every day. The ACH has been very helpful, being able to make things. You guys can also fund very quickly out of the portal too.

Those changes are something that we released with the transition from Quest, the Quest Trust Company that we did in November. We revamped the client portal. We’re so making new changes. Our systems department meets regularly to see what we can do to improve the way our systems are working. We’re able to process investments directly to the client portal. You are able to submit all your documents through the client portal to get that transaction funded. You can have your borrowers-tenants make payments directly to your Quest account, directly through the website. There are a lot of different things that we’re rolling out with the client portal too.

What other contribution numbers are up? We’ve talked about traditional and Roth IRAs, HSAs and ESAs.

Those are the ones that you still have to contribute for 2018. The simple IRA, the SEP IRA and the solo for 401(k) also are plans that you are able to contribute. If you’re self-employed, you’re able to contribute to those accounts. They did go up as well. The SEP IRA went up from $55,000 for 2018 to $56,000 for 2019.

Being self-employed is definitely a huge benefit if you understand the options and advantages you have of having a self-directed account because you’re your own employer. You don’t have an employer that’s going to be setting up a retirement account for you. You’re the employer establishing the account for your business. You get to make a contribution as the employer and potential employee depends on the account you have established. The rules you set in place, you get to choose the timeframe, the employee limits on everything else like that, which we definitely had the education specializing to be able to help you choose the best account. We won’t give you the best idea, but we’ll give you all of the ideas that you can choose and make your best decision.

Like one of these employer plans, you’re able to deduct your contribution so you’re able to get some tax reduction, some tax benefits now by making a contribution to those plans. As you can see, it’s the higher amount.

Contribution deducts your income. It’s basically taxed like a traditional Roth IRA after its pre-tax. When you pull that money out, later on, you’ll be taxed on that money.

The SEP and the simple IRAs, both pretty much follow the same rules when it comes to taxation on your contributions and your distributions as a traditional IRA like Scott was saying. You can deduct specific amounts from your tax return as the employer or the business tax return if it’s for the plan like you went on traditional IRA, but your own personal contributions. It’s like the traditional as well, you’ll be taking distributions sometime. If you’re familiar with the 701/2 Rule, the Required Minimum Distributions, those also fall into effect in the SEP and the simple IRAs too.

What’s the 2019 amount for simple IRAs?

It’s $12,500 or $3,000 with a catch up over the age of 50. You can make an extra $3,000 contribution if you’re 50 or older.

We also have a solo 401(k) specialist as well. If you’re self-employed, you don’t have any employees and you want to set up one of those solo 401(k) plans, contact us. We have solo 401(k) specialists that will give you a consultation to determine whether that plan is the right one for you. It goes over all the benefits and all the responsibilities that come with that.

Is that Rebecca Miller for the most part?

That is Rebecca Miller.

She’s our special accounts director, but she also has some of the highest knowledge when it comes to the self-employed types of accounts specifically, the solo 401(k) as well as inherited style IRAs like beneficial IRAs, traditional Roth, or whatever it may be. We’re all very knowledgeable, but Rebecca is the special accounts director for a reason. She knows her stuff when it comes to that stuff.

Her 401(k) calls are normally one hour because she goes over everything that you need to be aware of. With the 401(k), it’s a completely different vehicle. You have to do all the bookkeeping and everything yourself. Rebecca goes over all the responsibilities with that plan and also there are some great benefits to it, but you want to make sure you qualify for that plan.

Everybody is very knowledgeable. That’s the beautiful thing.

We pride ourselves in the education that we provide, but if having private that stands behind that education isn’t backed up by the actual knowledge of knowing what we’re talking about, we put this.

How many total events did you guys do in 2018?

I haven’t kept track of it but on average, we do about 600 events that we either put together or attend or get invited to speak at.

Do you know what you’ve got on capital rate for the year? Did you already count those up or not?

We have our meeting where we go over everything for the year so we’ll be releasing all of that.

NCS 401 | Self-Directed IRA

Self-Directed IRA: Being self-employed is a huge benefit if you understand the options and advantages you have of having self-directed account.


We talked about the Masters of Tax Avoidance. If there are any questions out there? Do you have questions? You’ve got the MTA we talked about with the Self-Directed Online Bootcamp. You’ve also got your Trillion Dollar Investment Mixer taking place here in Austin as well. When is that?

It’s the fourth Tuesday of every month here live in our office. It is free for anybody to attend. We asked that you RSVP because there are free food and drinks that we provide, but that’s not the caveat. The caveat is the fact that not only do we provide our education, a lot of the time as the speakers or whatever the presentation is. For instance, in January, we have Mitch Stephen coming in to go over the art of seller financing. If you’re a whole seller finance strategy follower when it comes to your investments in your IRA, it’s definitely somebody you want to come to check out. Mitch knows his stuff. He’s going to be sharing a lot of his strategies and education over the hour. Along with Mitch, we have tons of other guest speakers coming for the year of 2019, fourth Tuesday of every month here in Austin.

I’m asking him about you guys. You have this amazing space. It’s about 100 people. If somebody is interested, do they reach out to Ingrid or reach out to you, Keaton?

Reach out to both of us. I’d probably be a little easier to access with Ingrid being one of our directors handling a lot of stuff that goes on overall for the company. Keaton.Munster@QuestTrust.com. We have access to all those events that are coming up. They’re on our website. If you have any questions specifically about them or you need to ask a quick question, shoot me an email. I’ll be more than happy to help you out.

Let’s talk about a couple things because we hit on this a little bit earlier about how to put a $1,000 away or $800 away. There are some easy ways for people to set that stuff up where it happens automatically. We have the availability if somebody opens a new account and they put $100 opening money into the account. Is there a way for it to automatically draft out of their accounts?

You could send it directly to your bank to do something like bill pay if you wanted to. That’s what some people will do if they want to send those recurring monthly contributions to the account or you can do it all in a lump sum. Some people would go through the bank and do it as bill pay and to send that directly to their account.

That’s easy enough to do.

We have the delivery instructions with the routing number and account number that you provide your bank so that way they can have that on file to make it as easy as possible.

One of the questions I got from somebody because they had a deal set up in Quest IRA for the benefit of their IRA. Do people need to worry about changing the title on their investments before the name change?

After the transition, every investment is going to have to read Quest Trust Company for the benefit of.

You’re talking about new ones or past ones?

For new ones. If it’s any past ones, if have you had an asset and you’re selling it off, you have to put Quest Trust Company formerly known as Quest IRA.

That what I’m trying to get at. I’ll give you an example, somebody buys a piece of property at the county appraisal district. It’s labeled Quest IRA for the benefit of Scott Carson. Do I need to go on and I’ll create a deed to change it to Quest Trust?

If it’s an active investment that you haven’t already funded, then yes. It needs to be changed. The investment needs to be made in the name of Quest Trust Company. If it’s already funded, you are going to close it out. It’ll be Quest Trust Company formerly known as FKA Quest IRA FBO Scott Carson.

That’s got to be done in the closing document. I don’t need to worry about changing my investment now. It’s when I close it out.

If it’s an active investment in your account held it under the Quest IRA investing, then we will keep it as such until you close it out.

People who are making payments on loans or joint venture agreements and disbursements, does that need to be changed or should they go as Quest IRA?

It should be Quest Trust Company for the most part. We definitely updated clients. We send out mailers and emails, but in the case that you have a tenant that doesn’t make payments or you have dividends coming in from like an LLC investment, something like that. Those aren’t always going to be coming in frequently so you might not have them updated. If for some reason that we do get a payment that says Quest IRA for the benefit, normally our accounting reps will definitely reach out to the client, let them know, “It has changed. We’ll more than likely accept it the first time,” but going forward they’re going to want to make sure it’s changed, but sometimes it depends on the situation.

That’s a question I wanted to know.

A quick phone call or email is the best way to get a fast response as possible if you’re confused on something as simple as that. We’ll get it taken care of for you.

Was 2018 a good year for new accounts with the Quest as far as money coming in? Can you share that or do you guys hit new numbers? I know Nathan shares sometimes the numbers that were under deposit or things like that?

As far as the numbers, it’s been a good year. It’s always better than the last ones. It’s steadily increasing and the number of accounts that we’re getting and the funds that are clients are moving into self-direct and this whole stuff.

Do you see a lot of people doing a lot of rollovers or is it new accounts or is it a mixture of both?

I’d say it’s a mixture of both of them. For the most part, we do get a lot more people establishing accounts because they’re ready to make that step to change from their old, publicly traded 401k or IRAs that have been losing money over the last quarter of 2018. I’d say over the last quarters, we’re getting people opening accounts, transferring funds and funding investments.

It may have something to do with the stock market.

I’m glad you brought that up there.

I’ve had phone calls about people that are upset about the money they’re losing and ready to get things set up. They’ve been thinking about it for forever. They’re thinking about doing this, but they never acted on it.

A lot of them don’t even know that you have that option available or maybe they heard it from a friend. They want to explore what some of their other options are because they’re not very familiar with the stock market. They may have a friend who is a real estate investor, who is experienced in doing some private investments. It’s an asset that you can drive by and touch and see. It’s a tangible asset. It’s something that you don’t have to worry about what the value is going to be in the morning and then at night. It’s peace of mind for a lot of passive investors.

Passive is a big word that we use in our vocabulary, not here at Quest Trust but here in the real estate world. Use Scott as a quick example. In all of 2018, he did pretty awesome when it comes to his normal business, his clients that are closing, some awesome deals with notes, but also doing it inside their retirement accounts at Quest. On average, to round the numbers up, Scott and his team had $3.5 million funds moved over and invested in notes through retirement accounts simply at Quest by themselves. That doesn’t touch any of his numbers personally or anything else that he’s got affiliated.

It’s something as simple as Ingrid was saying, it’s a tangible investment. You can drive by touch, see and feel it. You know that your money is tied up on something that you have recourse on. Your IRA owns an actual real property as opposed to your brokerage account or your IRA or 401(k) invested in a mutual fund or stocks or anything like that. We all know if you’re a financial advisor or your broker calls you and says, “The markets dipped. I’ll go ahead and mail your stock certificate.” That piece of paper is not going to be worth the ink that you signed it with. Keep that in mind on your diversification of your portfolios.

Do people have to be in Texas? This is as we get people all across the country and 75 different countries as well?

We have clients all over the nation. Clients that invested overseas as well.

NCS 401 | Self-Directed IRA

Self-Directed IRA: It’s an asset that you can drive by, touch, and feel so it’s a tangible asset, something that you don’t have to worry about what the value is going to be in the morning and then that night.


We have clients from New York to California.

What questions do you guys have for Quest Trust Company?

We have a question for Coverdell. If you don’t have any beneficiaries that you can transfer that account who are under the age of 30, what can you do at that point? At that point, you’ll take a distribution from the account if you don’t have anybody else to transfer it to and at that point, this is not going to be for a qualified expense, you’ll pay taxes. It will get added to your income for that year. That’s taxes.

Is there a way to convert that into a Roth?

You cannot move anything else into a Coverdell other than a Coverdell.

Is the backdoor IRA still available?

Yes. A lot of people think that they can have a Roth IRA because what we hear a lot is, “I make too much money. My CPA told me that I can’t have a Roth IRA because I make a $300,000 a year.” Let’s say, to give you an example, there’s a way around that. You can open a traditional IRA. You put your contribution in there, you don’t get a deduction because you already make over the income limit for that deductibility. You put a contribution into the traditional IRA. You immediately convert that over to the Roth. It’s already an after-tax contribution. You can do that every year if you wanted to add those contributions every year to that Roth.

Would you pay taxes on the conversion?

You don’t pay taxes because you don’t get a deduction when you put it in. It’s already after tax and there’s no penalty for converting. There’s no 10% penalty or anything. You’re putting it into a traditional after tax and then immediately converting it in-house to a Roth IRA.

To touch on that point, Ingrid said, it’s a common misconception that we hear all the time, “I make too much money. I was told I can’t roll off. She said that that’s not correct. There is an income limit to be able to make a direct contribution, which is what we went over that backdoor Roth by converting it. A lot of times if you’re at that point, you’ve already been told your contribution to a traditional IRA or a tax-deferred type of account, those aren’t deductible contributions. It’s the same thing. With a Roth IRA, they are not deductible, which is why they’re going to be non-tax or penalized when you’re converting it over because it’s something you’re making out of pocket.

Everyone can have a Roth IRA. I don’t want to hear that excuse.

That’s a good thing that people know you can roll that over or reconvert it basically and they may have a Roth IRA and stuff like that. I know that we won’t get into this now because I think this is one of Quincy’s favorite discussion, inherited IRA.

You will get a little bit of that for the online bootcamp if you register for it. Quincy, we’ll be discussing that. We’ll probably have them here in Austin to give some classes on the inherited IRAs.

Do you have some goals for the year 2019 besides this location, personal goals, throw a wild card at you there?

I want to travel to three places outside of the United States within the year of 2019.

Does Mexico count?

I wanted it to count if I only got to the place, but I think I want to have an issue with that. I’m excited to expand my culture and see what else is out there in the world besides daily life here in America.


I agree with you on that one. I definitely want to travel more.

You travel a ton already.

I know, but I want to travel more. I want to get back into reading. I want to read a book a month. That’s some of the personal stuff.

What’s been the biggest surprise so far since you guys opened the office here?

It’s definitely the influx of the type of client investor whether they’re a client of Quests or an investor period, the questions are different. Noticing that the market here in Austin and the surrounding Central Texas area is a little bit different than what we’re used to in Houston or Dallas. That opened our eyes a definitely for sure for the end of last year going into this year, which we’re excited about because it means there are new ways to remain in business, new ways to advertise and new people to meet.

It’s definitely a different mixture. You’re not the whole, “Keep Austin weird,” aspect of things, but it is a different mentality I think a little bit.

It’s a little different because I was used to working in the Houston office and both the Dallas office as well and the market here is a lot different so we have to come up with a different approach.

The real estate market is so different here. It’s overpriced compared to a lot of other areas.

Houston and Dallas, it’s very quick. I wouldn’t say necessarily cutthroat, but you can get things done a lot quicker in the Houston and Dallas markets when it comes to your real estate closings than you can in the Austin market. Simply because the due diligence here is at a higher regard than it is in Houston and in Dallas. Not in a bad way but it’s simply that they like to take more time, double, triple checking their closings and documents, inspections and things like that.

I was in Spain on a cruise ship and we were able to get a deal done through online, through paying the expensive internet. I was able to get a deal done through the thing.

To make a point right there, a lot of people think that you have to be there. You have to have original documents, signatures, and everything to close a deal. You close the deal while you’re in Spain. You got to pay a little extra for the internet, but was it worth getting that or missing out on it because you’re on vacation? Don’t ever think that where you’re at, what you’re doing, whether you have an internet connection or you need to be there live in person is something that needs to happen to close the deal. Because as I’ve said multiple times, our customer service is unmatchable. Stay on top of it, get with us and we’ll make sure we get everything done for you.

When people are filling out documents, one of the things I like to do is I’ll fill up basically most of the Quest documents for people. It says one last question or what do I fill out? If I fill out like a private placement, private investment foreign form. I sent it to them and say, “You got to sign this and then email them in.” Do they often have to get an electronic document signed as well?

For that, normally we’ll send an electronic signature so if they can’t send it in, they can submit it electronically. We do it through RSign where we upload the document and we get their signature and then we’re able to fund that stuff.

You don’t have to refill out a document. You basically take the document they sent over, re-upload it, and recent to them for electronic.

NCS 401 | Self-Directed IRA

Self-Directed IRA: There’s always new ways to remain in business, new ways to advertise, and new people to meet.


If we need any additional signature, everything from them at that point. It’s pretty simple. The paperwork is a direction of investment form as it’s what every custodian will require and depending on the deal that you’re doing. If it’s a private entity, an LLC, a joint venture, we’ll need the subscription agreement, joint venture agreement. If it’s a note that you are doing, we’ll need the promissory note. If it’s real estate, we’ll need that contract. The direction of investment is something that every IRA custodian will require.

It’s straightforward information. All of our internal documents, the boxes are asking you exactly what you need, what’s your name, your account number, the amount invested, and the name of the investment. That’s for the most part, the basic of it. The other stuff that we request, it’s something that you request from the managing member of the LLC, JV or if it’s a note, you’re going to be the lender. You’re more than likely the drafting it up with your attorney or if you’re the borrower, all we need is a copy of it if it’s secure.

It’s a fillable PDF so it’s easy. You don’t have to print it out to fill it out there. There will be Acrobats. It’s easy enough to do.

To touch on that as well, if you’re getting an account established, your new account or you’re a new client, you want to open an account with Quest or fund a deal for the first time on your newly opened account that you haven’t funded. Keep in mind, that timeframe is usually a little bit longer simply because we have to get the account opened and the money moved over. Factor that into your first investment whenever you’re opening an account, you want to fund it through your IRA. Make sure that whenever you call in and you speak with one of us or any of the other certified IRA specialists that you asked, what’s the timeframe to get the account open, money moved, before I can invest it? That way you’re not moving closing dates. You’re not extending a closing time on notes. You’re not missing the cutoff of escrow for private placement deal.

What’s the average rollover timeframes? That’s one big thing when people out there talking with investors and they’re worried about their money in their 401(k) or their old 401(k) sitting out there from a previous job or an IRA with a bank or something like that. Rolling the money over into Quest. If it’s in funds, they’ve got to sell out of those funds and put it into cash and that’s going to take at least three business days. Rolling it over some Wells Fargo or Bank of America, what do you see as average timeframe?

Those that you mentioned usually take a little bit longer than some of the bigger ones like Fidelity or Charles Schwab. They usually move pretty fast. I would say those average three to five business days for them to send the funds. If it’s going to be from some other companies, maybe require a medallion stamp, so they want to verify your signature. You have to add extra steps on there, go to one of their local bank branches to get that. That may delay the process there. I would say some of the custodians take about a couple of weeks. When it’s coming from a 401(k) or an employer plan, those usually tend to take longer.

If you think you’re going to want to do a deal here sometime soon, I would say start that process as soon as possible. You can get that account open here with us within 24 to 48 hours that people work takes like five or ten minutes to complete. We can get you an account number reserved. That way you start requesting or completing the paperwork from your current 401(k) thrift savings plan, whatever the employer plan it is that you have so you can start requesting those funds over. I would say from an employer plan a couple of weeks or a little more.

Some of them only send checks too, don’t they?


I’ve had clients that had run through that issue before simply because they’re trying to get an account open, move the money from this stagnant sitting 401(k) they have done anything with and fund a deal within a two-week period, but the other custodians going to send a check in regular mail. We all know USPS is as quick as possible. We have a five-day hold on the checks as well. That’s another thing they want to keep in mind. There’s a five-day business hold because it’s a check. You have to make sure it clears on our side and their side. Anything after that, that’s the longest you’ll ever have to wait to get an account established, funded, and investment funded. After that, we stick by our funding times, 24 to 48 hours. That also corresponds with the correspondence. Make sure you’re on top of it. Make sure you get on top of your borrowers, your sellers, real estate agents, and escrow guys. We’ll get it done within two days on our time as long as all the correspondence is key.

As long as the other boxes are checked.

We’ll have everything done quicker than you can get an answer from somebody else.

Any mistakes that you see clients are making on a regular basis?

One of them that I want to point out is whenever you’re rolling over funds from a 401(k), some people will have that 401(k) company mail the check directly over to them. Let’s say I request the rollover. When I say, “Make that check made payable to Ingrid Chavez. I’ll get that check, but the company will withhold 20% of that. If I had $100,000 in that 401(k), I’m only going to get a check for $80,000. I have 60 days to be able to deposit those funds into an IRA for me not to pay that penalty. At that point, that custodian is going to process the distribution for $100,000. You only got a check for $80,000. You’re only putting $8,000 back into the account. Now the IRS is going to say “Where’s the rest? Where’s the remaining $20,000?” You have to come out of pocket at that point. We’ve had some clients who haven’t consulted with us and have done that process. It’s maybe they’ll have to pay a lot more in taxes because they’re not able to come up with $40,000 to put it into there.

That’s why it’s important to tell them to transfer in time.

Make sure to tell them to make that check payable directly to their Quests account. That’s why we always give them the account number and everything ahead of time once they complete the paperwork so they can start that process. If you made payable directly to that custodian that you’re sending the funds to, you don’t have to worry about that. It’s a custodian to custodian at that point.

The 20% she was mentioning, it’s a mandatory withholding. It’s not like they’re doing it to be mean or to pick on you, but 20% withholding is mandatory if you’re moving it from a qualified plan to your own name. Make sure that you used the correct verbiage that you’re going to do a direct rollover to another IRA.

Even if you get that check mailed directly to you because some companies will only a mail that check over to the mailing address you have. That’s okay if they send it directly to you, but if it’s made payable to the Quest account, forward it over. You’re not going to have that problem. Every single time I have a client rolling over from a 401(k), I say, “Make sure that check is made payable to the custodian.”

We’ve got to withhold the taxes.

Verbiage is the biggest thing. If you’re going through that situation and you’ve already spoken with your IRA specialists here at Quest, call us back. We would rather tell you that again three or four times before you run into the issue of having that 20% taken out because a lot of times it’s a big chunk of money in a 401(k) that you’re finally moving over. That can be a pretty big penalty that you got to pay on top of whatever else you might have to pay at the end of the year for taxes.

Any other events that you are rock and rolling here in the first quarter? You’ve got Trillion Dollar Mixers here. They have them in Dallas and Houston as well.

Dallas is having a March Madness event so they’re putting that event together in March. That’s going to be a fun one. It’s a little different there. As I said, we’re planning all the other events here soon.

You are speaking on our Virtual Note Buying Workshop, the weekend of Valentine’s, fall in love with notes and your IRAs.

What do you have coming up?

We’ve got the Valentine’s Day weekend workshop, the 15th, 16th and 17th. In April, we’ll have our Mastermind probably here locally since we had the Cape Coral One in December. We’re still trying to finalize dates for a Note Meetup Group here in Austin. In February, I’ll be in San Diego for Traffic & Conversion Summit. We’ll be doing a lot of individual like live podcasts events like this in person. In San Diego, we’ll have one in Kansas City this quarter as well and probably one in Houston at the office there and Orlando because I’m speaking at Podfest 2019. We’ve got a lot of things lined up with other people too. Some of the same people we work with on a regular basis. Magnify Your Wealth, you will be at Aaron Young’s event out in San Diego for that. We’re excited about 2019.

There are a whole lot of things that can happen this year. We’re pretty pumped.

That’s probably the best way to start it off and make 2019 the best.

It’s a clean slate and do whatever you want. We can set goals for yourself, no matter how farfetched they might seem. You have an entire year to accomplish them. Don’t let anything get in your way.

Is there a best number for people to reach out to you here in the Austin market?

I can give you my direct extension. It’s going to be the main number, (281) 492-3434, and my personal extension is 3615.

Keaton is the guy to go to if you’re interested in setting up an account or anything. He handles all of that. He’ll walk you through the first step to the point at where you are getting ready to fund your transaction. At that point, he’ll get you over to Michael or somebody else.

Let’s talk about that. You’ve got three other people that are working here. They’re busy right now doing things. You’ve got Michael. Who else is here?

NCS 401 | Self-Directed IRA

Self-Directed IRA: Make sure that you use the correct verbiage when doing a direct rollover to another IRA.


We also have Adrian, who is part of our auditing department. We have Katie who handles the transfers, but she came on to be a full IRA specialist.

She started as an intern here too, didn’t she?

She did.

She’s the third CISP that we have here in Austin. We have three of our five staff. Michael will be taking it this year. He’s pretty pumped about that.

We’re your Austin representatives here. We’re more than happy to help you with anything, but if you’re not in Austin, Keaton helps clients all over the US too so will Katie. Any questions out there, ask us.

As always, thank you for reading. We’ll see you all at the top.

Important Links:

About Quest Trust

NCS 401 | Self-Directed IRAHowdy, from the great state of Texas! The Quest Trust Company corporate headquarter is located in Houston, Texas, however, we administer client’s accounts from across the nation, with offices in Dallas and Austin, TX. We opened our doors in early 2003, and have since developed into one of the leading self-directed IRA administrators in the nation. With over 16,000 satisfied clients, we pride ourselves as having “world famous customer service.”

Quest Trust Company administers IRAs for the purpose of investing in “alternative” investments, including real estate, notes, oil and gas, and private placements, just to name a few of the almost endless investment possibilities. All of the accounts offered at Quest Trust Company are self-directed, meaning you get to make the decisions and our staff will provide expert account administration and transaction support services. We like to say that our best clients are the most educated clients, so in an effort to help you make the best investment decisions, we offer several educational weekly classes in our offices and online. In addition, each month Quest holds many presentations, workshops, and seminars across the U.S. to educate people and allow for excellent networking opportunities.


Love the show? Subscribe, rate, review, and share!
Join The Note Closers Show community today:

Leave a Reply

Your email address will not be published. Required fields are marked *